Tennessee’s housing market showed mixed but stable conditions in the fourth quarter of 2025, with home prices continuing to rise, construction permits showing renewed quarterly strength, and mixed results among major metros, according to the latest statewide report from Middle Tennessee State University.
“Home prices continued to rise statewide, although several metropolitan areas experienced slight quarterly price declines, highlighting uneven price trends across the state,” noted Murat Arik, director of the MTSU Business and Economic Research Center in the Jones College of Business and author of the report.
Home prices up with mixed metro-level trends
- Quarterly: Home prices continued to increase across Tennessee and the United States, though gains remained moderate.
Over the quarter, home prices in Tennessee rose by 0.7%, while home prices increased slightly faster at 1.2% nationally. While the majority of metropolitan areas experienced positive price growth, a few markets recorded modest declines, highlighting continued variation in housing market conditions across the state, Arik noted.
The quarterly trends for metropolitan areas are:
- Strong growth areas: The Jackson MSA recorded the largest quarterly increase in home prices, rising 4%, followed by the Johnson City (3%), and the Kingsport-Bristol MSA also experienced strong growth, with home prices rising 2.5% during the quarter.
• Moderate growth areas: The Memphis MSA recorded moderate growth of 2.1%, while Chattanooga and Cleveland posted increases of 1.4% and 0.9%, respectively. Home prices in the Nashville MSA also increased modestly by 1.2%.
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